EFSI is one of the three pillars of the Investment Plan for Europe introduced in
2015 and aims to help to finance strategic investments in key areas with relevance
for the CE such as infrastructure, research and innovation, renewable energy and
energy efficiency as well as risk finance for small and medium-sized enterprises
(SMEs) [2].
InnovFin is available since 2014 and consists of a range of tailored products—
from guarantees for intermediaries that lend to SMEs to direct loans to enterprises
—helping support the smallest to the largest R&I projects in the EU and countries
associated to Horizon 2020 [3]. Following the recommendation of the EIB study on
access-to-finance conditions for projects in CE, the EC and EIB amended the
InnovFin Programme to include business model innovation (not only technology
innovation) as an eligibility criterion [4]. Further, InnovFin also has dedicated
financing instruments in key areas relevant to CE. This is the case of the Energy
Demonstration Projects facility and the Circular Bio-economy investment platform.
A third example of a successful EIB—EC collaboration with relevance for the
CE is the programme for the Competitiveness of Enterprises and Small and
Medium-sized Enterprises (COSME), managed by the European Investment Fund
(EIF). The programme aims to improve access to finance for SMEs through two
financial instruments that have been available since August 2014: Loan Guarantee
Facility and Equity Facility for Growth [5].
Finally, the European Commission has partnered with the EIB to launch the
Circular Economy Finance Support Platform. The platform aims to “enhance the
link between existing instruments, such as the European Fund for Strategic
Investments and the InnovFin—EU Finance for Innovators initiative backed by
Horizon 2020, and potentially develop new financial instruments for circular
economy projects.” The platform is based on three pillars: the first pillar will ensure
coordination and awareness raising by providing support to the Circular Economy
Financing Expert Group. The second pillar will focus on advisory services. The
third pillar will assess the possibility and the need for new dedicated financial
instruments for circular economy projects [6].
3.4 Practical Issues for Financing CE Projects
As explained by Mrs. Goovaerts and Mr. Piechocki, CE specialists of EIB and
Rabobank, their institutions only finance sound and sustainable CE projects.
A sound circular project optimises the use and life of assets and products, closes
material loops to maintain or recover their economic value at end-of-life, and uses
sustainably sourced secondary raw materials, renewable or regenerative resources.
Secondly, a sound circular project is expected to be a part of the long term strategy
of the company and integrated in the business operation and its environment,
including a well-established cooperation with reliable partners within the value
chain. Moreover, a sound circular business model shows clearly identifiable
demand for circular products, materials or services resulting in reliable and
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L. Goovaerts et al.
2015 and aims to help to finance strategic investments in key areas with relevance
for the CE such as infrastructure, research and innovation, renewable energy and
energy efficiency as well as risk finance for small and medium-sized enterprises
(SMEs) [2].
InnovFin is available since 2014 and consists of a range of tailored products—
from guarantees for intermediaries that lend to SMEs to direct loans to enterprises
—helping support the smallest to the largest R&I projects in the EU and countries
associated to Horizon 2020 [3]. Following the recommendation of the EIB study on
access-to-finance conditions for projects in CE, the EC and EIB amended the
InnovFin Programme to include business model innovation (not only technology
innovation) as an eligibility criterion [4]. Further, InnovFin also has dedicated
financing instruments in key areas relevant to CE. This is the case of the Energy
Demonstration Projects facility and the Circular Bio-economy investment platform.
A third example of a successful EIB—EC collaboration with relevance for the
CE is the programme for the Competitiveness of Enterprises and Small and
Medium-sized Enterprises (COSME), managed by the European Investment Fund
(EIF). The programme aims to improve access to finance for SMEs through two
financial instruments that have been available since August 2014: Loan Guarantee
Facility and Equity Facility for Growth [5].
Finally, the European Commission has partnered with the EIB to launch the
Circular Economy Finance Support Platform. The platform aims to “enhance the
link between existing instruments, such as the European Fund for Strategic
Investments and the InnovFin—EU Finance for Innovators initiative backed by
Horizon 2020, and potentially develop new financial instruments for circular
economy projects.” The platform is based on three pillars: the first pillar will ensure
coordination and awareness raising by providing support to the Circular Economy
Financing Expert Group. The second pillar will focus on advisory services. The
third pillar will assess the possibility and the need for new dedicated financial
instruments for circular economy projects [6].
3.4 Practical Issues for Financing CE Projects
As explained by Mrs. Goovaerts and Mr. Piechocki, CE specialists of EIB and
Rabobank, their institutions only finance sound and sustainable CE projects.
A sound circular project optimises the use and life of assets and products, closes
material loops to maintain or recover their economic value at end-of-life, and uses
sustainably sourced secondary raw materials, renewable or regenerative resources.
Secondly, a sound circular project is expected to be a part of the long term strategy
of the company and integrated in the business operation and its environment,
including a well-established cooperation with reliable partners within the value
chain. Moreover, a sound circular business model shows clearly identifiable
demand for circular products, materials or services resulting in reliable and
430
L. Goovaerts et al.